QROPS Changes Strengthen Legitimate Transfers
HMRC today proposed some new changes to how QROPS are reported. The changes to QROPS strengthen legitimate transfers in my opinion and make QROPS even more stream for genuine expats.
The proposed changes to QROPS set out today by HM Revenue & Customs will help prevent pension-busting and are another indicator how mainstream and recognised QROPS have become.
We fully support these proposed changes as they will introduce even more robust reporting procedures, which will further protect those transferring their pensions out of the UK and strengthen the pension transfer industry.
Former QROPS will, under the new rules, have to follow reporting requirements even if they are no longer listed as QROPS, and failure to do so will result in heavy fines.
Additionally, a UK scheme administrator will have to notify the date on which the member left the UK; or if the member is still a UK resident, they will have to notify HMRC when the member ceases to be UK resident
The proposals highlight that the UK is fully committed to allowing free movement of capital under EU law.
Should they come into force, these regulations will help prevent the ill-advised practice of pension-busting, which wholly goes against the spirit of QROPS legislation, and will crackdown on those who aren’t genuinely leaving the UK from transferring a pension fund into a QROPS.
HMRC’s possible crackdown is another indicator of how mainstream and recognised QROPS have become for genuine expatriates and genuine transfers.”
More than 10,000 UK pensions were transferred out of the UK last year, 2,250 of these by the deVere Group.
Nigel Green deVere Group
Blog written 24th May